UPDATE 1-CME

Group seeks feedback on nearly non-stop grain trade

January 22, 2013|Reuters

CHICAGO, Jan 22 (Reuters) - The Chicago Board of Trade onTuesday said it will survey customers for feedback on a nearlynon-stop electronic trading cycle for grains that still irkssome traders after being implemented last year.

The Board of Trade, owned by CME Group Inc, hasalready received "significant feedback" about the extended hourssince they took effect in May, the exchange said, withoutspecifying whether the comments were positive or negative.

The Board of Trade expanded the electronic trading sessionto 21 hours from 17 hours to fend off a challenge from rivalIntercontinentalExchange.

"As we start a new year, we think the timing is right toreview those changes and industry feedback more formally toensure we're continually meeting our customers' needs," TimAndriesen, managing director for agricultural commodities andalternative investments at CME Group, said in a statement.

Some grain traders have circulated a petition calling on theBoard of Trade to reduce the 21-hour trading day because theysay the longer cycle has spread out volume, cutting liquidityand increasing volatility. They add that the threat of ICEpoaching business from CME has so far proven mostly hollow.

In October, Bunge Ltd, one of the world's largestagricultural trading houses, threw its weight behind the effortto reduce hours, telling Reuters that 21-hour trading was "toomuch" for traders and merchants to monitor.

However, the Board of Trade has said it will maintain thenearly round-the-clock electronic trading hours to staycompetitive. The exchange is open to trimming open-outcry hours,CME Executive Chairman Terry Duffy said last year.